FINANCIALS: Games Workshop Annual Report – 2013
It’s that time of year again. Lets see how Games Workshop is doing.
Some highlights:
Sales and cost of sales
Reported sales increased by 2.7% to £134.6 million for the year. On a constant currency basis, sales were up by 3.5% from £131.0 million to £135.6 million; progress was achieved in North America (+7.8%), Export (+2.3%), Asia (+10%) and in Other sales businesses (+27.2%) while sales in the UK (-1.4%), Continental Europe (-0.3%) and Australia (-4%) were in decline. To be consistent with how we manage the business, we now report development costs within cost of sales. In the year we reclassified £4.8 million (2012: £4.7 million) to cost of sales from operating expenses. This reclassification gave rise to a decrease in gross margin of 3.5% (2012: 3.6%).
Operating profit
Core business operating profit (operating profit before royalty income) increased by £4.6 million to £20.2 million (2012: £15.6 million). On a constant currency basis, core business operating profit increased by £5.2 million to £20.8 million (2012: £15.6 million). This result was delivered by sales growth of 2.7%, with maintenance of our gross margin, and a £2.5 million decrease in operating expenses; included in the period reported is the cost of £1.1 million related to payment of the profit share and cost of £0.2 million related to payment of performance related pay to Hobby centre managers. Costs remain a key area of focus. After royalty income of £1.0 million (2012: £3.5 million) operating profit increased by £2.1 million to £21.3 million. On a constant currency basis, operating profit increased by £2.7 million to £21.8 million. During the year, we continued with our retail store programme designed to improve our retail profitability and converted a further 82 stores to the one man format. This takes our total to 274 out of 412 stores (UK: 93, Continental Europe: 80, North America: 76, Australia: 22, Asia: 3). This programme will continue in 2013/14.
Revenue by Segment (Pound Sterling)
UK 30,922,000
Continental Europe 39,452,000
North America 36,688,000
Australia 10,943,000
Operating Profit by Segment (Pound Sterling)
UK 5,227,000
Continental Europe 4,689,000
North America 3,336,000
Australia 756,000
Hmm, first half year (Q3-4 2012) sales up strongly, second halfyear (Q1-2 2013) down slightly. It would seem the release of Warhammer 40,000 6th Edition was very well recieved.
Go ahead – chime it, you know you want to.
